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Start-up of new upstream projects in Ghana and Angola as well as Indonesia have been supporting Eni's oil production growth. For 2017, Eni expects oil and natural gas production at 1.84 million (BOE/D), up 5% year over year. Also, the company expects oil and gas production in 2017-2020 to grow 3% per year on new field start-ups and ramp-ups. However, we are concerned about the significant rise in expenses related to exploration operations. Eni’s price chart shows that it has underperformed the industry over the last year. Also, declining cash balance and increasing short-term debt loads are reflective of the company’s weak balance sheet. Eni is facing pressure on top line. Over the past three years (2014–2016), total revenues declined at a CAGR of 34.8%.

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